acc101 principles of accounting group assignment

ACC101- PRINCIPLES OF ACCOUNTING GROUP ASSIGNMENTGROUP 3:TRẦN PHI LONGNGUYỄN THỊ DIỆU LINHDƯƠNG DUY NHẬTNGUYỄN TRẦN TÂM NHƯTRẦN ĐINH GIA BẢOTRẦN ĐÌNH THÁIABBA ABDALLAH RILWANINSTRUCTOR:

ACC101- PRINCIPLES OF ACCOUNTING GROUP ASSIGNMENT

GROUP 3:TRẦN PHI LONGNGUYỄN THỊ DIỆU LINHDƯƠNG DUY NHẬTNGUYỄN TRẦN TÂM NHƯTRẦN ĐINH GIA BẢOTRẦN ĐÌNH THÁIABBA ABDALLAH RILWAN

INSTRUCTOR: MISS NGUYỄN MAI HOÀNG VY

customers has grown To accommodate the growth, the accounting system is modified to set up separateaccounts for each customer The following chart of accounts includes the account number used for eachaccount and any balance as of December 31, 2019 Rick Connor decided to add a fourth digit with a decimalpoint to the 106 account number that had been used for the single Accounts Receivable account This changeallows the company to continue using the existing chart of accounts.

1 Journal entries

4 Wages payable ($125×4)

17 Account payable 5,800Merchandise inventory

Cash ($5800−$58)

20 Sales return and allowances 500

Sales discount ($4,700×1%)

8,504

AdjustmentsAdjusted Trial BalanceAccount

5551.110

676Mileage

677Miscellaneous Expense

Depreciation– Office Equipment

Depreciation– Computer Equipment

– Office Equipment

613Depreciation– Computer Equipment

414Sales returnsand allowances

discount

502Cost of goods

106.1Alex’sEngineering Co.

For year ended

Revenue

For the three months ended March 31, 2022.

Add: Net income 18.833

5 Classified balance sheet March 31, 2020.

Less: Accumulated depreciation – computer equipment (2,500) (17,500)

Gross Margin Ratio

Gross sale = Computer Services revenue + Sales = 25.307 + 19.240 = 44.457Net sales = Gross sales – Sales returns and allowances – Discount = 44.457 - 500 - 47= 43.910

Debt to assets RatioTotal Debt = 875

Total Assets = 120.268

Debt to assets Ratio = Total debt/ Total assets = 875/120.268 = 0.73

Profit margin

Net income = 18.833Net sale = 43.910

Profit margin = Net income/ Net sales = 18.833/43.910 = 0.43

Explain computation:

The cost of goods sold makes up much of a merchandiser’s expenses Without sufficient gross profit, a merchandiser will likely fail Users often compute the gross margin ratio to help understand this relation It differs from the profit margin ratio in that it excludes all costs except cost of goods sold The gross margin ratio (also called gross profit ratio) is defined as gross margin (net sales minus cost of goods sold) divided by net sales